AZZ Inc. Delivers Record-Breaking Q2 Sales, Fueling Growth Strategy
Good morning and welcome to the AZZ Inc. second quarter fiscal year 2027 earnings conference call and webcast. Today, we're joined by Tom Ferguson, President and Chief Executive Officer, Jason Crawford, Chief Financial Officer, and David Nark, Chief Marketing Communications and Investor Relations Officer.
In a stellar performance, AZZ Inc. has delivered record-breaking second quarter sales, witnessing a 16.7% increase from the prior year. This remarkable growth is attributed to the company's strong execution, resilient business model, and effective growth strategy. The segments achieved record quarterly sales, with Metal Coatings sales increasing by 22.9%, driven by higher volumes across various end markets.
"We delivered record second quarter sales up 16.7% from the prior year, reflecting strong execution, a resilient business model, and the strength of our growth strategy," stated Tom Ferguson, President and Chief Executive Officer. "Our performance and market demand continue to validate the investments we made to expand capacity, strengthen customer partnerships, and enhance our market positions."
The Metal Coatings segment achieved a 30.7% adjusted EBITDA margin, benefiting from operating leverage on record sales and volume. Despite increased LME zinc prices, AZZ's pricing model and associated surcharge mechanisms continue to mitigate raw material price volatility.
Precoat Metals sales increased by 11.5%, driven by volume growth from the continued ramp of the Washington, Missouri facility and value-added pricing initiatives. The segment adjusted EBITDA margin expanded 100 basis points to 21.2%, reflecting higher throughput and solid operational execution.
AZZ Inc. has completed the acquisition and integration of Seattle Galvanizing Company, establishing its presence in the Pacific Northwest region. This strategic move expands AZZ's position in a favorable market with strong demand fundamentals in infrastructure, industrial, and construction sectors.
"We're excited to have completed the acquisition of Seattle Galvanizing Company, expanding our footprint into a new five-state region," said Tom Ferguson. "This addition will enable us to better serve customers across the Pacific Northwest and unlock significant growth opportunities."
AZZ Inc.'s growth strategy focuses on disciplined acquisitions and value-accruing organic investments that strengthen its competitive position. The company is committed to expanding capacity where demand fundamentals remain strong, as seen in the recent expansion of the Crowley, Texas facility.
The strength in infrastructure and long-term outlook are creating opportunities for AZZ Inc. to partner with major customers as they expand their capacity. With a solid foundation laid by these quarterly results, AZZ Inc. is poised to continue its growth trajectory in the coming quarters.
